Changshan Li v. New Asia Chinese Restaurant Wan Da Inc.
June 15, 2026·25-2500·Panel Decision·By Aisha Johnson
The Eighth Circuit reversed a district court ruling that classified a delivery driver as an independent contractor. The appellate court held that the driver was an employee under the Fair Labor Standards Act based on the economic realities of the working relationship.
Changshan Li appealed an adverse district court judgment in a wage-and-hour action. The district court had concluded that Li, working as a delivery driver, was an independent contractor and therefore not protected by relevant labor laws.
The court’s reasoning
The Eighth Circuit reviewed the economic realities factors de novo. The court found that delivery service was integral to the business, Li’s vehicle investment was not significant compared to the employer’s, and the employer exercised control over pay and delivery locations. Li worked six days a week and was on-call. The court also found no good cause to set aside the default judgment against the corporate defendant.
What it means going forward
The reversal requires the district court to treat the driver as an employee and proceed with further proceedings on the wage-and-hour claims.
